Do Markets Want More Fed Action and QE3?

9/11/2012 11:27AM

Many investors are certain that the Fed is poised for a new round of economic stimulus, but some observers are asking whether central-bank actions are reaching a point of diminishing returns. Matt Phillips reports on Markets Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... and while it did to the weak market German constitutional court ruling ... Apple on unveiling an upgrade of existing product exciting stuff there I ... but the biggest event ... today FOMC meeting conclusion Thursday ... all are we going to get with the whole QE three are Guinea get some stimulus from the Federal Reserve ... Matt Phillips is here to tell us ... may the Lord again nobody knows that rank right up but you will tell us what the market expectations are and they are pretty high the market has been increasingly looking for some sort of ... bond buying program to come out right Federer's or ... sooner rather than later ... of course we don't know exactly what that if you look across asset classes Acuity gold ... traditionally seen as a hedge against inflation ... it's been rising sharply right look at stocks are not ... going gangbusters right now but they've had quite a run since June ... Treasurys even have been going up in yields of income and downs and sheen ... mortgage back securities an area where everyone's looking for the Fed to be doing some buying health care and drive mortgage rates down further on ... YouTube ... altogether it looks like the market isn't dead said that the Fed is going to launch some ... bright and that this is another this ... on this the oppressed column on Monday write and he did you talked a lot appeal isn't just us making this stuff up right you talked a lot of people yet we are making a almost too will one day expected that the Fed there are a couple of the analysts you you would say that not ready yet others the um some bond market analyst at Nomura Securities in Japanese trading house they think that the jobs report wasn't ... what they can then sufficiently weak enough to do from the Fed to act in September ... there also is this issue of whether the Fed wants to act ... in front of an election whether that would make it look like it's trying to improve the economy or just it gets messy for the Fed the Fed does not want a pure political to do this ... you know although there they claim that they can do whatever they want some people also believe that they would if if given their druthers they'd rather do it after the election right he knew that this meeting this week in September meeting are really is interesting because obviously with the pedal is does affect the economy on the scene affects the market ... those two things oven ramped up then you ladle I'm also the election this really is a very very ... unusual time you notice was that it's worth pointing out that everyone remembers back in two thousand and ten when Ben burn Anqi ... got up in front of a meeting at Jackson Hole ones and ... really got people expecting QE to the second round of ... the day waiting ... in September they didn't do it the right number they waited till November to the Townhall meeting was August twenty ten right so you're talking to right we just added this year now and then again the the chairman's ... speech at that conference ... got people excited that the prospect of some other problems in the works ... it might not be this week you might not be in September they could weaken of which elected in twenty ten Ryder pray that I interrupted your writer at the ready right ... that the one point ... that ... I'm so what should people be looking for this week ... well obviously this statement I it's gonna be on Thursday afternoon that seems to be when will expect to hear something there's also this interest that this is Alan means it's kind of wonky but whether they're going to push ... for word what they say when we can expect to see rates you know how to read it yet yet so it you know some people are saying we're to see that pushed back out into the middle only to twenty fifteen which could be which can be a huge huge deal he think no I mean whatever it's a love letter Devon Fed chairman might have a totally different world right now it's hard to say they can say twenty fifteen route on how much I would put on it it's a forecast and what they say but it's not promise I mean and though they they would point that out to you that if the data changes they can change and they're not and that ... but if you look at the market the market is convinced ... that rates remain low